Entrepreneurship in superdiverse societies and the end of one-size-fits-all policy prescriptions

PurposeThe purpose of this paper is to explore the entrepreneurial and policy consequences of the structural changes associated with postindustrialization.Design/methodology/approachThe approach uses Schumpeterian and institutional theories to predict the consequences of postindustrialization on four types of innovative markets: global mass markets; global niche markets; local mass markets and local niche markets.FindingsThe paper makes two key predictions. First, global mass markets will account for most cost-cutting process innovations. Second, niche markets, whether global or local, will provide the bulk of product innovations. Opportunities for product innovations in niche markets multiply both as the result of a more complex economy and as the result of heterogeneous preferences of consumers with divergent learning trajectories.Social implicationsThe key implication of the theoretical pattern prediction of this paper is that there are increasing opportunities for entrepreneurs to introduce novelties that cater to niche demands, and this includes new lifestyle communities. The increasing diversity of values and preferences implies that one-size-fit-all policies are becoming increasingly inimical to the entrepreneurial discovery of higher-valued resource uses.Originality/valueThis paper takes a standard prediction of entrepreneurial theories – that innovations become more common with an increase in economy-wide product complexity – and extends this to increasing complexity on the consumption side. With increases in opportunities for learning, consumers diverge and develop disparate lifestyles. The resultant super-diversity, which multiplies consumption niches to a much greater extent than what ethnicity-based diversity indices would imply, makes it more difficult to achieve consensus about the desirability of public policies.

Unboxing organisational complexity: how does it affect business performance during the COVID-19 pandemic?

PurposeThis study aims to distinguish businesses by their degree of complexity and to analyse the influence of complexity on the performance of firms during the coronavirus disease 2019 (COVID-19) pandemic.Design/methodology/approachData were collected from 468 businesses, and various multivariate statistical techniques were used. Initially a factor analysis was conducted, organising variables into five factors. A discriminant analysis, performed with the five factors, allowed discriminating firms based on whether they internationalise or not. A linear regression was performed in order to estimate the contribution of each factor in the business performance.FindingsThe results suggest the existence of additional variables for measuring the complexity. From the factorial analysis it is possible to conclude that business complexity can be explained by size, indebtedness and profitability, internationalisation, number of employees, and age and leverage. Total assets, indebtedness and age are the variables that contribute the most to business performance. On the other hand, indebtedness, internationalisation, age and leverage are the independent variables that most contribute to explain business performance.Originality/valueThis paper presents advances in two ways. First, it proposes measures of complexity (highly debatable in the literature). It also proposes internationalisation as an explanation of complexity. Second, this paper sheds light on businesses decisions to grow, taking into account how complexity may affect performance.

Fostering entrepreneurship: the crucial role of monitoring schemes

PurposeThe purpose of this paper is to investigate the effect of government-led programs on the engagement of individuals in entrepreneurship.Design/methodology/approachThe authors worked with government-led programs of 16 European countries between 2003 and 2014 and were able to benefit from the 2008 natural experiment (i.e. the global financial crisis) to produce a robust investigation using a regression kink design (RKD).FindingsThe work shows that government-led programs that are designed to include monitoring schemes can significantly increase individuals' engagement in opportunity-driven entrepreneurship. The authors found that monitoring schemes do not have the same relevance for necessity-driven entrepreneurship. Therefore, the authors believe the difference occurs because monitoring design avoids problems related to moral hazard and adverse selection when it comes to individuals choosing whether to participate (or not) in government-led programs.Originality/valueWhile it is important for governments to provide an enabling environment for entrepreneurship, this study showed that not all types of public program have positive results. In fact, it has been demonstrated that poorly-designed programs can actually decrease the likelihood of individuals engaging in entrepreneurial activities. The efficiency of programs is substantially improved, however, when they are designed to include monitoring schemes.

We versus me: Indirect conditional effects of collectivism on COVID-19 public policy hypocrisy

PurposeDuring the early SARS-CoV-2 (COVID-19) pandemic outbreak, the Center for Disease Control and Prevention (CDC) stated masks “may not protect the wearer, but it may keep the wearer from spreading the virus to others”. Health officials revised mask guidelines to include both the wearer and others, but contradiction became a focal point for online debate and credibility. While revised policies eventually became adopted by the public, there was loss time and lives during this critical stage. This study investigates collectivist messaging on public policy support.Design/methodology/approachCOVID-19 public policy hypocrisy was defined as the gap between supporting community policies while rejecting policies more likely to impact the individual. United States participants (N = 1,605) completed questionnaires. Moderated mediation analysis was conducted using SPSS PROCESS.FindingsThose high on collectivism and high on global personal impact associated with lower COVID-19 public policy hypocrisy. These individuals indicated consistent support for community and individual policies, likely requiring personal sacrifices. Indirect conditional effects of lower conscientiousness associated with higher hypocrisy among those collectivistic.Originality/valueParticipants evaluated preference to original public safety ads, representative of basic societal and individual benefits. Those higher on collectivism preferred societal “we” versus individual “me” public safety ads. Implications discuss benefits of personal and communal public health messaging in an individualistic society so businesses can reopen. Entrepreneurs experienced major economic setbacks that effective public health policies could have mitigated.

Is the success of entrepreneurs dependent on the environment in a conflict zone: insights from Indian-administered Kashmir

PurposeThe purpose of this research is to empirically examine the impact of selecting entrepreneurial framework conditions on the success of entrepreneurs in a conflict zone. The study was conducted in Kashmir, which is a fitting conflict context. The study undertaken responds to the call by multiple authors to substantiate the entrepreneurship literature with empirical evidence from conflict-affected areas. The authors argue that better entrepreneurial framework conditions will enhance entrepreneurial success in conflict zones. This research work is important because it will add to our understanding of the influences of the entrepreneurial ecosystem on entrepreneurs who pursue an entrepreneurial career in conflict zones. This research will add to the existing body of knowledge, which seemingly lacks evidence from conflict zones. Furthermore, this research is important in the Kashmir context because this research will provide insights to stakeholders such as entrepreneurs, government agencies, entrepreneurship development agencies and NGOs, etc.Design/methodology/approachThe authors surveyed 400 entrepreneurs in the manufacturing, services and retail sectors in Kashmir through a questionnaire. The self-reported responses were used for assessment of entrepreneurial framework conditions and financial and non-financial performance. The data were analysed through the partial least squares structural equation modeling (PLS-SEM) to test the hypothesised relationships. The results were considerable.FindingsThe authors found that most Kashmiri entrepreneurs do not find the entrepreneurial framework conditions supportive of their business. Upon testing the hypothesis, they found a significant and positive impact of entrepreneurial finance, government policies and cultural and social norms on entrepreneurial success. The common belief that ease in market dynamics would positively impact success was negated in this case. They found a significant and negative impact of market dynamics on success. Furthermore, the physical, commercial and professional infrastructure and services showed insignificant results.Research limitations/implicationsThis research provides insights about the requirements of entrepreneurial framework conditions in a conflict zone for achieving successful results. The current study acknowledges the call of researchers to carry out quantitative studies in conflict zones.Practical implicationsThe findings of this research might prove to be beneficial to the entrepreneurs, policymakers, government agencies and other stakeholders. If taken into consideration while formulating the policies in favour of entrepreneurs in a conflict zone, the findings of this research are an added resource. The current research might be valuable to the Government of Kashmir in recognising the perception of entrepreneurs towards the initiatives or the policies drafted in the past.Originality/valueAs per the knowledge of researchers, no such study has been conducted in Kashmir vis-a-vis the variables studied. The study is original in terms of analysing the impact of the environment on the success of entrepreneurs in a conflict zone in Kashmir.

COVID-19 and public policy and entrepreneurship: future research directions

PurposePublic policy has been an integral part of the response mechanisms used to manage the COVID-19 crisis. As a result, greater attention has been placed on policy planners in terms of how they can enact entrepreneurial ideas that help to alleviate the turmoil surrounding the COVID-19 pandemic. In this article, the crisis management literature is utilised as a way of understanding future research directions regarding entrepreneurial behaviour in the COVID-19 pandemic.Design/methodology/approachA review of the existing research on crisis management is conducted with the aim of identifying future research trends. Thus, this article will enable a better understanding of potential future research tracks such as (1) the consequences of the crisis, (2) environmental context, (3) empirical advancement and methodological change, (4) entrepreneurial marketing and branding, (5) crisis management, (6) policy and governance and (7) stress and wellbeing.FindingsThere a numerous ways research on COVID-19 can make theoretical, empirical and policy advancement. Therefore, an interdisciplinary perspective is required in order to consider alternative points of view regarding the link between COVID-19, entrepreneurship and public policy.Originality/valueThe ways research on COVID-19, entrepreneurship and public policy can be advanced are discussed in relation to the identified research tracks but also potential theoretical implications for new research.

The net effect of the travel restriction policy on tourism demand: evidence from Greece

PurposeThe purpose of this study is to provide up-to-date evidence on the net effect of COVID-19 pandemic on international arrivals and occupancy rates in Greece. Analysis and forecasting point out the demand for 2020, and thus yielding more concrete evidence on the pure effect of the pandemic on the tourism industry.Design/methodology/approachMonthly observations from January 2000 to December 2020 were extracted from the Tourist Enterprises Association (SETE) for Athens, Thessaloniki, Kalamata, Rhodes, Mytilene, Santorini, Zante, Kefalonia and Crete. To model and forecast the volatility and the time trend effect of tourist arrivals individually, the study applies the autoregressive integrated moving average (ARIMA) (p,d,q) and the error, trend, seasonality (ETS) model.FindingsEmpirical results suggested that Athens, Thessaloniki and Crete were three destinations with the worst losses in international tourist arrivals. Specifically, Athens was expecting to have (without the existence of COVID-19) more than 330,000 tourist arrivals in December 2020 while instead only 73,000 international tourists visited Athens that period. Similarly, Thessaloniki and the island of Crete lost more than 150,000 international visitors during December 2020.Originality/valueThe author’s study adds to a growing number of studies regarding the impact of COVID-19 by incorporating monthly international arrival data and occupancy rate data for the whole 2020 reflecting differences in transportation or vacation choices. Also, the authors operationalized multiple time-series forecasting models (ETS and ARIMA) for reaching more concrete forecasts and estimates on the effect of COVID-19 on the Greek tourism sector.